Pet Care Industry Market Research & Statistics

Global Pet Care Industry

Domestic pets are taking up an increasingly important place in households worldwide. Pet owners are spending more and more on pet care across a range of sectors, including pet health, food and toys. According to the 2011-2012 American Pet Products Association National Pet Owners Survey, more than 60% of homes in the US have a pet, or close to 73 million households.

Cultural attitudes toward owning pets mean that domestic animals are viewed more and more as members of the family. Pet care spending was little affected by the economic recession, with owners cutting corners elsewhere rather than reducing their pet care budgets.

Pet ownership in the US is at an all-time high, leaving room for market growth. Not only is pet ownership climbing, but spending per pet is also on the rise, with owners splashing out on basic products such as food, but also on more sophisticated products and services, like grooming and accessories.

Key Market Segments

The global animal health industry involves antibiotics, anthelmintics, vaccines and medical feed additives. The leading segment in the animal health market is represented by pharmaceuticals such as anti-infectives and parasiticides, reports Koncept Analytics. Vaccines are the second-leading market segment.

A trend towards preventive health practices will fuel vaccine market growth. The Americas and the EU dominate the global pet health market. US pet health spending is forecast to reach $33 billion in 2014, according to Freedonia. Demand for pet health products and services from manufacturers is expected to record yearly growth of close to 6%, hitting close to $6 billion in 2014.

The world pet food market is expected to be worth almost $96 billion by 2017, according to Global Industry Analysts. The market is fuelled not only by a growing pet population but also by increased spending per pet. The EU dominates the global market, fuelled by demand for health-oriented products and treats aimed at specific types and ages of pets.

Asia-Pacific is recording the fastest growth in the pet food products market, with a yearly rate of 9% through 2017. Market growth is driven by healthy products, innovation, and shorter product lifecycles in developed markets like Japan and South Korea, while price and value for money fuel growth in less-developed markets such as India, China and Vietnam.

Industry-level interest in the pet food sector points to its potential. KKR was part of a group of investors to acquire Del Monte for close to $5.5 billion in 2010, while Procter & Gamble/Iams took over Natura, a holistic pet food maker. Also, Nestlé Purina acquired Waggin’ Train, a pet treat maker, in the same year, notes Packaged Facts. Private equity firm Wind Point Partners also acquired Petmate in 2011, while smaller outfits continue to receive capital infusions.

Regional Market Share

The US pet care market was worth close to $51 billion in 2011, reports the American Pet Products Association. Food was the leading segment at close to $20 billion, followed by veterinary care, which exceeded $14 billion, and medicine at over $11 billion. Pet services such as grooming and boarding generated close to $4 billion in 2011, and live animal purchases exceeded $2 billion.

The Southeast Asian pet care market is growing faster than any other regional market. According to Euromonitor International, the region will surpass $1 billion by 2016. Market expansion will depend on the ability of companies to devise effective marketing strategies to attract first-time consumers to the market.

In India, a growing number of pet shops are fuelling pet product market growth. Veterinary clinics are also representing a growing source of sales, reports Euromonitor International. Grooming products represent a market segment with good potential as pet owners are spending more on pampering their pets. Companies exporting to India include Furminator, Plush Puppy, Karlie and Isle of Dogs.

Market Outlook

An aging population and declining birth rates have led to a different cultural attitude toward pets, which are increasingly regarded as family members. Moving forward market trends in the sector will reflect those in other sectors, with green products and health products witnessing strong growth.

Product innovation in the pet care market will continue to reflect the changing place of animals in the home with personalized food bowls, monogrammed sweaters and Halloween costumes becoming popular ways to humanize pets.

Current value growth of pet care slowed slightly in 2013 compared with the previous year in view of the unstable political situation; however, it continued at a relatively strong rate with more consumers ...

Pet care in 2014 was strongly influenced by growing interest in health and wellness products as well as higher priced, quality products, which saw increasing popularity mostly in dog and cat food. Slovaks ...

Pet care recorded slightly stronger current value growth in 2014 with customers more likely to make purchases and more inclined to improving the wellbeing of their pets. Budget cutbacks still registered ...

Cat food recorded slower current value growth in 2013 than in the previous year, which was due to the unstable political situation in Thailand that affected consumers’ confidence regarding spending; ...

In 2014, the humanisation of dogs is expected to continue alongside consumers’ hectic lifestyles. Consumers are increasingly treating their dogs as key companions and thus more willing to spend on premium ...

Other pet food registered stronger current value growth in 2013 than in the previous year, with a further increase expected in 2014. Fish as well as other small mammals, such as rabbits and hamsters, gained ...

Within cat food, consumer awareness of novelties and new trends is high. Cat owners are familiar with the product ranges available and are interested in product composition, especially the proportion of ...

Within dog food, the domestic preparation of food gradually declined in the Czech Republic over the last decade and the trend continued in 2014 and is expected to do so over the forecast period. Pet owners’ ...

The most important trend influencing sales of pet products is pet humanisation. As pets, especially dogs and cats, are coming to be considered true family members, pet owners are more interested and demanding ...

The dog food category saw few significant changes over 2014. Health and wellness products benefited from greater demand among Slovak consumers in all price segments and even became more popular in the ...